The comparative financial statements of Marshall Inc. are as follows. The markut price of Marshal common stock was s 61 on December 31, 20Y2. Comparative Balance Sheet Marshal Inc. December 31, 20Y2 and 20Y1 Comparative Retained Earnings Statement 20Υ2 20Υ1 For the Years Ended December 31, 20v2 and 20v1 20Y2 20Y1 Assets Rutained earngs, lauary $3,089,050 $2,603,550 Current assets Nat income 729,600 533,200 Cash $912,500 $815,990 Total $3,818,650 S3,16,750 Marketable securities 1,381,080 1,352,220 Dividends On preferred sock $11,200 S11,200 Accounts receivable (net) 781,100 737,300 On common stock 36,500 36,500 Inventories 584,000 452,600 Total dividends $47,700 $47,700 Prepaid expenses 172,627 163,200 Rutained earrings, December 31 $3,770,950 $3,089,050 Total current assets $3,831,307 $3,521,310 Long-term investments 1,386,498 972,249 Marshall Inc. Comparative Income Statement Property, plant, and equipment (net) 4,5 ,000 4,095,000 For the Years Ended December 31, 20Y2 and 20Y1 Total assets $9,767,805 $8,588,559 20Y2 20Y1 Liabilities Sales $4,127,440 $3,987,130 Cost of goods sold 1,503,070 1,38220 Current liabilities $1,126,855 $2,199,509 Gross profa $2,824,370 $2,6040 Long-term liabilities: Selng epensees $956,190 $1,190,400 Mortgage note payable, 8% $1,570,000 Administrative enpenses 814,540 690,130 Total operating enpense Bonds payable, 8% 1,930,000 1,930,000 $1,770,730 Income from operations $1,053,640 $714,780 Total long-term liabilities $3,500,000 $1,930,000 Cther reven 55,460 45.620 Total liabilities $4,626,855 $4,129,509 $1,109,100 $760,400 Cther expense (interest) 280,000 154,400 Stockholders' Equity Income before income ta S829,100 $606,000 Preferred $0.70 stock, $40 par $640,000 $640,000 Income ta expense 99,500 72,800 Common stock, $10 par 730,000 730,000 Nt income $729,600 $533,200 Retained earnings 3,770,950 3,089,050 Total stockholders' equity $5,140,950 $4,459,050 Total liabilities and stockholders' equity $9,767,805 $8,588,559
The comparative financial statements of Marshall Inc. are as follows. The markut price of Marshal common stock was s 61 on December 31, 20Y2. Comparative Balance Sheet Marshal Inc. December 31, 20Y2 and 20Y1 Comparative Retained Earnings Statement 20Υ2 20Υ1 For the Years Ended December 31, 20v2 and 20v1 20Y2 20Y1 Assets Rutained earngs, lauary $3,089,050 $2,603,550 Current assets Nat income 729,600 533,200 Cash $912,500 $815,990 Total $3,818,650 S3,16,750 Marketable securities 1,381,080 1,352,220 Dividends On preferred sock $11,200 S11,200 Accounts receivable (net) 781,100 737,300 On common stock 36,500 36,500 Inventories 584,000 452,600 Total dividends $47,700 $47,700 Prepaid expenses 172,627 163,200 Rutained earrings, December 31 $3,770,950 $3,089,050 Total current assets $3,831,307 $3,521,310 Long-term investments 1,386,498 972,249 Marshall Inc. Comparative Income Statement Property, plant, and equipment (net) 4,5 ,000 4,095,000 For the Years Ended December 31, 20Y2 and 20Y1 Total assets $9,767,805 $8,588,559 20Y2 20Y1 Liabilities Sales $4,127,440 $3,987,130 Cost of goods sold 1,503,070 1,38220 Current liabilities $1,126,855 $2,199,509 Gross profa $2,824,370 $2,6040 Long-term liabilities: Selng epensees $956,190 $1,190,400 Mortgage note payable, 8% $1,570,000 Administrative enpenses 814,540 690,130 Total operating enpense Bonds payable, 8% 1,930,000 1,930,000 $1,770,730 Income from operations $1,053,640 $714,780 Total long-term liabilities $3,500,000 $1,930,000 Cther reven 55,460 45.620 Total liabilities $4,626,855 $4,129,509 $1,109,100 $760,400 Cther expense (interest) 280,000 154,400 Stockholders' Equity Income before income ta S829,100 $606,000 Preferred $0.70 stock, $40 par $640,000 $640,000 Income ta expense 99,500 72,800 Common stock, $10 par 730,000 730,000 Nt income $729,600 $533,200 Retained earnings 3,770,950 3,089,050 Total stockholders' equity $5,140,950 $4,459,050 Total liabilities and stockholders' equity $9,767,805 $8,588,559
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer questions 13, 14, and 15
Transcribed Image Text:Required:
Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if
required. Assume 365 days a year.
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5.
Number of days' sales in receivables
days
6. Inventory turnover
7. Number of days' sales in inventory
days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest earned
11.
Asset turnover
12. Return on total assets
13. Return on stockholders' equity
%
14. Return on common stockholders' equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield
Transcribed Image Text:Marshall Inc.
Measures of liquidity, Salvency, and Prafitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock wii $ 61 on December 31, 20Y2.
Comparative Balance Sheet
Marshall in.
December 31, 20Y2 and 20Y1
Comparative Retained Earnings Statement
20Υ2
20Υ1
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
outained arnings, Janry 1
$3,089,050
$2,603,550
Current assets
Net income
729,600
533,200
Cash
$912,500
$815,990
Total
$3,818,650
$3,136,750
Marketable securities
1,381,080
1,352,220
Dividends:
On preferred stock
S11,200
$11,200
Accounts receivable (net)
781,100
737,300
On common stock
36,500
36,500
Inventories
584,000
452,600
Total dividends
$47,700
$47,700
Prepaid expenses
172,627
163,200
Rutained earngs, Decembir 31
$3,770,950
$3,080,050
Total current assets
$3,831,307
$3,521,310
Long-term investments
1,386,498
972,249
Marshall inc.
Comparative Income Statement
Property, plant, and equipment (net)
4,550,000
4,095,000
For the Years Ended December 31, 20Y2 and 20Y1
Total assets
$9,767,805
$8,588,559
20Y2
20Y1
Liabilities
Sales
$4,327,440
$3,987,130
Cost of goods sold
1,503,070
1,382,820
Current liabilities
$1,126,855
$2,199,509
Gross profe
$2,824,370
$2,604,310
Long-term liabilities:
Seling expenses
s056.190
$1,190,400
Mortgage note payable, 8%
$1,570,000
s0
Administrative expenses
814,540
699.130
Total operating expenses
$1,770.730
Bonds payable, 8%
1,930,000
1,930,000
$1.889.530
Income from operations
$1,053,640
$714,780
Total long-term liabilities
$3,500,000
$1,930,000
Cther revanu
55,460
45,620
Total liabilities
$4,626,855
$4,129,509
$1,109,100
$760,400
Cter expense (interest)
280,000
154,400
Stockholders' Equity
Income before income tax
$829,100
$606,000
Preferred $0.70 stock, $40 par
$640,000
$640,000
Income tan xpense
99,500
72,800
Common stock, $10 par
730,000
730,000
Net income
$729,600
$533,200
Retained earnings
3,770,950
3,089,050
Total stockholders' equity
$5,140,950
$4,459,050
Total liabilities and stockholders' equity
$9,767,805
$8,588,559
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